Document Analysis NLP IA
FREQ, RAKE or TFIDF
Summary (IA Generated)
Desktop Metal is one of the most interesting startups to come out of Boston in some time, with a technology designed to “print metal.
According to its filing, Desktop Metal’s largest VC investors are NEA with 17.
The difference in those two figures comes from the $305 million of capital held by the SPAC and $275 million in a private investment into the company that will be conducted as part of the acquisition, along with fees and some other ancillary financials.
Desktop Metal raised six rounds of capital (Series A through Series E & E-1), raising a total of $438 million according to the company’s filings.
The biggest overall winner in terms of multiples on investment is Kleiner Perkins, which sits at a roughly 10x return on its full investment into the company.
Kleiner took a fifth of the Series A, putting in roughly $3 million.
It then proceeded to double down in the Series B, where it invested approximately $13 million, before tapering off its pro rata in later rounds.
4 million in invested capital is skewed toward the earliest rounds, that drove up its return multiple.
NEA, perhaps owing to its larger fund scale, constantly invested in the company across all of its rounds, ultimately investing about $57 million.
It invested in Desktop Metal through its seed program, and also did about 43% of the Series A.
Ultimately, NEA had a computed multiple on investment of roughly 5.
31x return, and it similarly plowed money into the company across all of its rounds, albeit slightly less aggressively than NEA, ultimately investing about $40 million into Desktop Metal.
Heading over to the growth investors, GV started investing in the Series C round and invested a total of about $65 million across the later stage, securing a return of 2.
In addition, I am not including some minor common share stakes held by these venture firms, which are small enough to not radically change their return profile.
Desktop Metal’s quick appreciation in value over just five years will also give these firms very strong IRRs for their investments.
Given that Desktop Metal is heading to the public markets through a SPAC, all of these investors have an option to sell their stakes or hold on to them going forward.
If they hold and Desktop Metal performs well, their stakes could increase dramatically in value, driving much higher returns.
Once public, the firms have flexibility on if and when to exit, and that decision will ultimately determine their final realized returns to LPs.